Looking back on analog semiconductors stocks' Q1 earnings, we examine this quarter's best and worst performers, including Vishay Intertechnology (NYSE:VSH) and its peers.
Demand for analog chips is generally linked to the overall level of economic growth, as analog chips serve as the building blocks of most electronic goods and equipment. Unlike digital chip designers, analog chip makers tend to produce the majority of their own chips, as analog chip production does not require expensive leading edge nodes. Less dependent on major secular growth drivers, analog product cycles are much longer, often 5-7 years.
The 15 analog semiconductors stocks we track reported a slower Q1; on average, revenues beat analyst consensus estimates by 1.9%. while next quarter's revenue guidance was in line with consensus. Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance due to mixed inflation data, but analog semiconductors stocks have exhibited impressive performance, with the share prices up 12.3% on average since the previous earnings results.
Vishay Intertechnology (NYSE:VSH) Named after the founder's ancestral village in present-day Lithuania, Vishay Intertechnology (NYSE:VSH) manufactures simple chips and electronic components that are building blocks of virtually all types of electronic devices.
Vishay Intertechnology reported revenues of $746.3 million, down 14.3% year on year, topping analysts' expectations by 1.4%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a decline in its operating margin.
“As expected, first quarter revenue declined 5% sequentially primarily due to ongoing semiconductor inventory digestion and lingering macro-economic uncertainties, particularly in Asia and Europe. Passive components revenue is stable to growing in Automotive with stronger growth in Aerospace/Defense. Gross margin for the quarter included a 74-basis point negative impact from the addition of Newport,” said Joel Smejkal, President and Chief Executive Officer.
The stock is down 2.1% since the results and currently trades at $22.48.
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Best Q1: Impinj (NASDAQ:PI) Founded by Caltech professor Carver Mead and one of his students Chris Diorio, Impinj (NASDAQ:PI) is a maker of radio-frequency identification (RFID) hardware and software.
Impinj reported revenues of $76.83 million, down 10.6% year on year, outperforming analysts' expectations by 4.4%. It was a very strong quarter for the company, with a significant improvement in its inventory levels and an impressive beat of analysts' EPS estimates.
The stock is up 26.6% since the results and currently trades at $152.9.
Weakest Q1: Microchip Technology (NASDAQ:MCHP) Spun out from General Instrument in 1987, Microchip Technology (NASDAQ: MCHP) is a leading provider of microcontrollers and integrated circuits used mainly in the automotive world, especially in electric vehicles and their charging devices.
Microchip Technology reported revenues of $1.33 billion, down 40.6% year on year, falling short of analysts' expectations by 1.2%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a decline in its operating margin.
Microchip Technology had the weakest performance against analyst estimates and slowest revenue growth in the group. The stock is down 4.3% since the results and currently trades at $89.78.
MACOM (NASDAQ:MTSI) Founded in the 1950s as Microwave Associates, a communications supplier to the US Army Signal Corp, today MACOM Technology Solutions (NASDAQ: NASDAQ:MTSI) is a provider of analog chips used in optical, wireless, and satellite networks.
MACOM reported revenues of $181.2 million, up 7% year on year, in line with analysts' expectations. It was a weaker quarter for the company, with a decline in its operating margin.
The stock is up 7.2% since the results and currently trades at $106.1.
Universal Display (NASDAQ:OLED) Serving major consumer electronics manufacturers, Universal Display (NASDAQ:OLED) is a provider of organic light emitting diode (OLED) technologies used in display and lighting applications.
Universal Display reported revenues of $165.3 million, up 26.7% year on year, surpassing analysts' expectations by 9.9%. It was a very strong quarter for the company, with an impressive beat of analysts' EPS estimates and a significant improvement in its gross margin.
Universal Display pulled off the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is up 33.2% since the results and currently trades at $208.19.
